Daily News: October 15, 2012

Credit Suisse, Goldman Sachs Arrange $450MM for Alon USA

Alon USA Energy, Inc. announced that it has engaged Credit Suisse Securities (USA) and Goldman Sachs Lending Partners to assist it with the arrangement of a secured term loan facility in an aggregate principal amount of up to $450 million.

The company intends to use the proceeds of borrowings under the facility to (1) repay all indebtedness outstanding under its existing term loan facility (approximately $422 million), (2) pay related transaction costs and expenses, and (3) to the extent of any remaining proceeds after the uses described above, for general corporate purposes.

Borrowings under the facility are expected to be secured by liens on substantially all of the company’s assets, other than the assets of the company’s retail subsidiaries and the Krotz Springs, Louisiana refinery. The planned structure of the facility will support the company’s previously-announced public offering of common units representing limited partnership interests of its subsidiary Alon USA Partners.

Alon USA Energy, Inc., headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States.